Seeing as no one else has answered...
The first thing I think you've got right is that you've said you're doing it because you love it! (and not because you want to be published or to make money. A friend of mine has this year just given up trying to write lesbian fiction - she was very much impressed with a lesbian/feminist writer and lecturer at her university who, she says, had made her think that this was a good target market - I'm not sure how much this was influence or inspiration (from her tutor) or simply self divination - she says she doesn't know anyone who wasn't writing to make a living from it - I said I knew no one who was!)
I've read and listened to so many interviews with artists and writers of all kinds who have all come to the same thought: that you, the writer, the creator, are the first and solitary audience of one for your work and that's who you write for first and foremost - I was listening to an interview on Youtube only this morning with jazz pianist Bill Evans saying exactly this.
Stephen King had said the same thing - he suggests that you put your first draft in a drawer for 6 weeks and go off and do other, sometimes shorter, writing projects before you come back to the draft with fresh eyes.
I wouldn't focus too much attention to your criticism about the draft - Paul Simon said "great songs aren't written - they're re-written"
but it's a balancing act - if you're being objective you might have some valid points but I'd try and think more about your powers of invention and ingenuity to transform "your" draft - it's yours and you can do what you like with it. You obviously must have had, and probably still have, some conviction or belief in your idea and what you've written so far so I wouldn't back down just because it starts to look difficult to move forwards with it - use your creative, analytical and logical powers to work out what your options are to transform what you already have - I don't think you have to be cut-throat about it - I have found through years of song writing in particular that the smallest twist or addition can completely transform something that seems bland and pointless into something fresh and kicking. The example I'll give is one I've talked about elsewhere in the past. I was helping a friend with a song about his strange, lonely existence, living in the unpeopled wide rural expanses of Oregon - I put one line into his song that completely changed what was simply an atmospheric song about driving in the lonely backwoods into something much darker and sinister - the line was about driving "with a pretty little girl in the back of my car" - it's a connection made, I think, with my impression of the strange stories I hear coming from rural America, about the murders, feuds and abductions in very isolated areas where normal rules of law or morals sometimes break down. It also taps into dark, deep rooted fears which we all share - I see this as "groundwater" - it connects all of us - so going deeper emotionally is one way to look for new ways to connect your story with the reader - look at what we all share. I tend to look at drafts of my songs in layers knowing that I am weak in some aspects - the deeper emotional content is one Iayer, probably the main one, I have to work at - for me, of I've written something that feels 2-dimensional, it's strengthening this emotional dimension that helps make it stand up in 3-dimensions.
Sorry can't be more helpful other than to say that most of us have doubts about what we create right up until that moment where we find the missing pieces and there's always things missing from first drafts.